according to keynes theory, when is an economy depressed or in recession?\nwhen there is full…

according to keynes theory, when is an economy depressed or in recession?\nwhen there is full employment\nalong the vertical portion of the long-run aggregate supply curve\nwhen increases in real output can no longer be gained\nwhen the factors of production are not fully utilized

according to keynes theory, when is an economy depressed or in recession?\nwhen there is full employment\nalong the vertical portion of the long-run aggregate supply curve\nwhen increases in real output can no longer be gained\nwhen the factors of production are not fully utilized

Answer

Brief Explanations:

Keynesian economic theory focuses on aggregate demand driving economic activity. A depressed/recessionary economy occurs when aggregate demand is insufficient, leading to unused productive resources. The other options describe conditions of full capacity or full employment, which are the opposite of a recession.

Answer:

when the factors of production are not fully utilized